Question

Producers _____ labor, because they want and are willing to pay for people to work in their businesses.
a. demand
b. supply

Answer 1

Producers DEMAND labor because they want and are willing to pay for people to work in their businesses.

The employees are the ones who supply labor. They are the human resource of any company. 

Answer 2

Answer: a. demand

Producers demand labor, because they want and are willing to pay for people to work in their businesses.

Explanation:

Producers demand for labour is the number of labour which producers are willing and able to employ at a given wage rate over a specified period of time. If the wage rate demanded by labour is high, producers will employ or demand for less labour but if the wage rate is low, producers will employ or demand for more labour.